Palm Beach Leads In Sales For Investing

March 24, 1986|By Lisa Moore and Michael Cannon

The demand for undeveloped South Florida acreage purchased as an investment fell last year.

Our survey covered all recorded sales transactions, including that of unzoned and agricultural land sold at locations where the short-term use for improvements or subdivisions is unlikely -- since acreage buyers are generally speculative investors.

(BU) In Palm Beach County, as it has been for three years, demand for acreage was greater than in either Broward of Dade counties. That is due to the accelerating growth in Palm Beach County, which has encouraged acquisitions of land as an investment. Palm Beach County`s acreage purchased for investment rose 20 percent over 1984 figures -- from 159 sales worth $176.28 million to 191 sales worth $366.34 million. Dollar volume rose 208 percent.

(BU) In Broward County, the low levels of activity reflected that the supply of land for long-run development is much lower than its South Florida neighboring counties. The number of major purchases was off 24 percent -- 100 sales, compared to 132 in 1985 -- and the dollar volume was off 46 percent, $77 million compared to $144.9 million in 1984.

(BU) In Dade County, the dollar volume of sales last year was te lowest so far in the `80s. Since 1982, demand for investment land in Dade has been slowed by the rapid decline in foreign investment. Over half of all major sales in the late `70s through 1981 were made to foreign buyers.

Dade speculative acreage sales in 1985 totaled $101.8 million, off 24 percent from 1984`s $134.8 million, even though the number of sales, 338 was 4 percent higher than 1984s total of 324 sales.